Friday, November 22, 2013

Shanghai Petrochemical purchased

This morning I added some shares in Shanghai Petrochemical (HK:338) to the portfolio. This is essentially an investment in a stock that I expect (or hope) will benefit from a combination of regulatory reforms and improved margins for its products. I'm possibly a bit late to be jumping into this one as the share price as already moved quite a bit, but with the most recent brokers price targets ranging from HK$2.50 to HK$3.70 and the forecast PE ratio being relatively modest, I hope there is still a reasonable amount of upside.

I paid HK$2.11 per share. Unfortunately, this was a limit order which was only partially filled and, with the shares closing at $2.21, I am not sure if I want to chase the price.